Up to 2.1 Million AMD-Based Notebooks from Dell by Year End – Citigroup

Analysts from Citigroup Research estimate that Dell has ordered much more Advanced Micro Devices’ processors for notebooks than previously anticipated. The investigators believe that Dell may acquire from 1.4 to 2.1 million processors from AMD this year.

“Our field work suggests two AMD-based consumer notebooks will be available in September from Dell. This will increase to 4 models in October. Normally, new notebook models will sell between 100K-150K units per month,” a report from Citigroup claims.

The Number of AMD-Based Notebooks from Dell

Data by Citigroup Research

Timeframe

Number of Models

Unit Sales

September

2

200K - 300K

October

4

400K - 600K

November

4

400K - 600K

December

4

400K - 600K

Total Q4 2006

4

1.2M - 1.8M

Total 2006

4

1.4M - 2.1M

“Of the average 1.5M notebook units expected to be sold in Q4 2006, we estimate 750K are “new” sales for AMD, implying 750K of Dell-related sales cannibalize AMD sales from other sources. Assuming an average $68 ASP, this translates to $51M incremental revenues and we adjust our model accordingly,” the report states.

Earlier, based on a report from Bank of America, it was reported that Dell had ordered between 1 million and 1.2 million desktop computers with Advanced Micro Devices processors and about 800 thousand notebooks from its manufacturing partners. The numbers from Citigroup reflect the number of microprocessors for mobile computers Dell can order from AMD, which means that they [numbers] do not necessarily contradict each other.

Back on Thursday Dell said that it would release desktops running microprocessors from AMD in September, but did not say anything about the notebooks, even though earlier an anonymous Dell executive in Asia confirmed laptops featuring central processing units from AMD. Despite of this, even if shipments of mobile computers with AMD chips are delayed to a later date that is not discussed at this time, shift of 15% of Dell’s desktops to processors from Sunnyvale, California-based chipmaker is a considerable hit for Intel Corp., who has been exclusive supplier of CPUs to Dell.